SEC Charges Two North Carolina Advisors Over Alleged $75 Million Fraud

Posted on September 16th, 2022 at 2:09 PM
SEC Charges Two North Carolina Advisors Over Alleged $75 Million Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged two North Carolina-based advisors, Gregory Lindberg and Christopher Herwig, with defrauding clients out of at least $75 million through unauthorized trades.

The two advisors, who operated Standard Advisory Services Limited, breached their fiduciary duties to their clients between July 2017 and 2018 by improperly transacting several undisclosed related-party trades that were not in their client’s best interests. According to the SEC, the two advisors misappropriated nearly $57 million in client funds while Standard Advisory generated at least $21.4 million in advisory fees in connection with the schemes.

Lingberg allegedly conducted the schemes by utilizing complex investment structures as well as a web of affiliated entities to conceal the fraud, according to the SEC. The SEC’s complaint is seeking disgorgement plus prejudgment interest, penalties and permanent injunctions.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, sec

Return to Archive

TESTIMONIALS

Previous
Next

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

March 12, 2025
GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.

March 11, 2025
Former CNBC Analyst Pleads Guilty to $2.7 Million Securities Fraud Scheme

James Arthur McDonald Jr., a former financial advisor and frequent CNBC guest analyst, has agreed to plead guilty to securities fraud, admitting to defrauding investors out of at least $2.7 million, as reported by ThinkAdvisor. The felony charge carries a maximum sentence of 20 years in federal prison.

March 10, 2025
Wells Fargo and Merrill Lynch Settle SEC Charges Over Cash Sweep Program Policies

The Securities and Exchange Commission (SEC) has announced settlements with Wells Fargo Clearing Services LLC, Wells Fargo Advisors Financial Network LLC, and Merrill Lynch, Pierce, Fenner & Smith Incorporated over allegations that they failed to implement proper policies and procedures for their cash sweep programs.